Sales of new residential properties rebounded moderately in Shanghai last week amid ample new supply.
But average prices hit a four-month low as the market shifted toward medium- to low-end homes, the latest weekly report by Shanghai Centaline Property Consultants Co yesterday showed.
The area of new residential properties sold, excluding government-subsidized affordable housing, rose 7.5 percent from a week earlier to 101,000 square meters during the seven days to Sunday,.
“Outer areas dominated the market last week, with western Qingpu District climbing to first place with weekly sales of 17,000 square meters, a surge of 143 percent from the previous seven-day session,” said Lu Wenxi, Centaline’s senior research manager. “The average price of a new home was therefore dragged down quite notably amid sluggish transactions for expensive homes.”
Citywide, new homes sold for an average 52,545 yuan (US$7,802) per square meter, a week-on-week drop of 10.7 percent.
While overall sentiment remained relatively weak, medium- to low-end homes gained at the expense of pricier offerings.
Only one project in the top 10 had a price tag of over 80,000 yuan per square meter, while the rest all cost no more than 60,000 yuan.
The most sought-after residential development, in Qingpu, sold 6,230 square meters, or 50 units, last week at an average of 35,379 yuan per square meter. It was followed by a project in Chongming District, where 4,165 square meters, or 29 units, were sold for an average 33,273 yuan per square meter.
A development in Jing’an District squeezed into the list at 10th, selling 14 apartments at an average 86,144 yuan per square meter.
On the supply side, eight developments, or 173,000 square meters of new homes in total, were released onto the market, a surge of 366 percent from the previous week.
“As the Spring Festival is just around the corner, buying momentum is bound to weaken, while some developers might try to catch the last-minute opportunity to boost sales,” Lu said. “But that is not going to change the overall holiday mood in the market much, so we do not expect to see any major improvement within the next three to four weeks.”
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